Anticraft Ltd. invited applications for 2,00,000 shares of ₹10 each at ₹2 premium, payable as ₹3 on application, ₹6 on allotment (including premium) and ₹3 on call. Public had applied for 2,70,000 shares out of which applications for 20,000 shares were rejected and remaining were allotted on pro-rata basis. Rahul who has been allotted 8000 shares failed to pay allotment and call money. His shares were forfeited and later on 6,000 of these shares were re-issued @ ₹8 per share as fully paid-up.
Based on the above information, answer Questions.
At the time of forfeiture Securities Premium will be debited by:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹16,000
The premium of ₹2 per share was payable with allotment. Rahul paid neither allotment nor call money, so the premium on his shares was never received. At forfeiture the Securities Premium Reserve Account is debited with the premium not received.
Shares forfeited = 8,000
Premium not received = 8,000 × ₹2
= ₹16,000 (debited to Securities Premium Reserve)
NCERT (2026-27 edition): |